Tomorrow will be 15 weeks since the scale-up of PGX to 50L was said "almost completed" after three trial runs. Three trial runs would allow a judgement concerning the repeatability of production runs with PGX.
In CZO's Q1 financials release 10 1/2 weeks ago it was further confirmed that Health Canada approval for the first PGX product(immune booster) could come before year-end with the 50L scale-up. The 100L scale-up was expected to be "fully commissioned" in what is now the next 50 days and 100L is the decision point for mass industrialization of PGX.
"NATEX are experts at design and construction of full-scale commercial plants based on the 100L scale...This presents many business growth opportunities for both Ceapro and NATEX as the deployment of several commercial plants is envisioned with each new product." CZO news release
In just over 8 weeks PGX scalability is scheduled to be presented at a conference of Canadian engineers. Interesting timing as the merger with AEZS is now virtually fully complete: Last November CZO also said: "
Protocol designed for a head-to-head study in animals for testing immune properties of PGX-YBG against a commercial formulation." Using human cell-lines CZO previously found PGX-YBG to be 5-fold more immune stimulatory. Corroboration of the results in a human cell-line in an animal model could further strengthen the case for PGX-YBG as an immune booster. A comprehensive article on PGX-YBG/Fibrosis with McMaster may also be published in the next 30 days based on the average timeline from submission to publishing for the journal. CZO's Nov 2022 news release: "This next phase of scale up will allow us to work with commercial partners in nutraceuticals and pharmaceuticals to formulate, test, and commercialize novel products and formulations, including novel functional foods and beverages, novel drugs and various forms of delivery systems,” said Gilles Gagnon, M.Sc., MBA, President and CEO."
In the Small Cap Discoveries presentation yeast beta glucan as an immune booster was said sold by eight companies. The lion's share of the market is split between Kerry in the US and Lieber in Germany. Lieber has 80% of the yeast market for beer. CZO has processed their products and they work in collaboration. CZO has purifed the product and made it much more potent and they know this.
2023 Annual Report: "Beta Glucan from yeast is recognized for its immune boosting properties and can be found in many commercial formulations. Most of these formulations are produced using spray dried technologies yielding large size particles under various shapes compared to small and uniform particles obtained with the PGX Technology. Furthermore, as per our research conducted in collaboration with a California based company, some of these formulations contain impurities that may induce some unwanted physiological effects like inflammation instead of preventing the inflammation process as seen with Ceapro’s PGX processed yeast beta glucan. In fact, Ceapro’s team data analysed, tested, and screened numerous sources of YBG from many global suppliers. While three global suppliers for YBG were shortlisted (from Germany, China, Brazil), one YBG feedstock material clearly outperformed all others in terms of purity, batch-to-batch consistency, heavy metal content, and available certifications (IFS, FSSC 22000, Kosher, Halal, GMO-free).
The retained source of yeast beta glucan was used for both in vitro and in vivo studies showing specificity to Dectin-1 receptors located on macrophages that are involved in the immune and inflammation processes. In addition to specific binding to the receptor, the PGX processed YBG showed up to 5 times more potency than existing formulations suggesting that smaller doses of Ceapro’s YBG could be used for similar or better efficacy."
Notes based on the 2023 AGM: CZO has shown 2X CoQ10 bioavailability of cyclodextrine and 4X bioavailability of Triolien. Discussions concerning out-licensing a PGX complex are underway right now with serious potential partners in the neutraceutical industry. Partners are pretty impressed and understand why CZO wants to make bioavailability the unique selling point. Sigrun Watson is holding discussions with very, very serious partners. CoQ10 is a $4 billion market.
------- Previously Gilles suggested Symrise may be interested in CoQ10 as a second-generation Aveeno and said that Symrise likes what CZO is doing with PGX.
More recently the company has been boosting its potential wound healing claims for oat beta glucan and avenanthramide with the Angiogenesis Foundation.
The 40 million dose immune booster plant was previously said to have a $100 million net present value. What could it be worth de-risking PGX to 100L, with PGX's potential first Health Canada approved product and revenue, and potential corroboration in an animal model for the immune booster? AEZS also has certain tax assets. What could the value of a CoQ10 deal be given the CoQ10 market may be significantly larger than for an immune booster. What could the value of the fibrosis product be, etc.?
After repeatedly saying that he was "thrilled" with the merger Canadian pharmaceutical icon Ronnie Miller said in the June 3, 2024 news release that with the merger now completed the company was now "optimized" to bring "transformational" products to the market. AEZS brought significant cash, human resources to support human trials, and access to NASDAQ:
Ronald W. Miller, Chair of the Company. “With the successful completion of this merger, we are now optimized to bring value-driving, transformational products to the market.” June 3, 2024 news release